The US Treaty of Amity Company

The US Treaty of Amity Company in Thailand refers to businesses operating under the Treaty of Amity and Economic Relations between the United States and Thailand. This treaty, signed in 1966, grants US citizens and companies national treatment in Thailand, allowing them to engage in most business activities without the usual foreign ownership restrictions.

  • Key Benefits of a Treaty of Amity Company:

1. 100% US Ownership

 Unlike standard Thai companies, which typically require 51% Thai ownership in many sectors, an Amity company can be fully owned by Americans.

Allows US companies to operate in most industries (except for restricted sectors like banking, insurance, telecommunications, and land ownership).

Amity companies are exempt from needing an FBL, simplifying operations.

US investors and employees may find it easier to obtain visas and work permits.

How to Set Up a Treaty of Amity Company:

Register a Thai Company
The company must be registered under Thai law, but with US shareholders.
Apply for Amity Treaty Certification
Submit documents to the Thai Ministry of Commerce proving US ownership.
Obtain Necessary Licenses
Depending on the business type, additional permits may be required (e.g., restaurant, consulting, manufacturing).
Comply with Thai Regulations
While ownership is flexible, the company must still follow Thai tax, accounting, and labor laws.

Industries Commonly Using Amity Treaty:

  • Consulting & Professional Services
  • Technology & Software Development
  • Manufacturing & Export
  • Hospitality & Restaurants (but cannot own land)

Limitations:

  • Cannot own land in Thailand (but can lease).
  • Restricted sectors (finance, telecom, etc.) still require Thai majority ownership.

Must maintain at least 51% US shareholder ownership to retain Amity benefits.

Is It Still Relevant?

Yes, even though Thailand has other options like BOI promotion or Smart Visa programs, the Amity Treaty remains a straightforward way for US entrepreneurs to do business in Thailand without Thai partners.

Comparison: Treaty of Amity vs. BOI vs. Standard Thai LLC

Feature

Treaty of Amity Company

BOI-Promoted Company

Standard Thai LLC

Foreign Ownership

100% US allowed

Up to 100% foreign (depends on BOI category)

Max 49% foreign (unless exempt)

License Required

No Foreign Business License (FBL) needed

BOI certificate replaces FBL

Needs FBL for restricted activities

Tax Benefits

None (standard corporate tax 20%)

Tax holidays (0% for 3-8 yrs), import duty exemptions

No special benefits

Work Permits

Easier for US nationals

Very easy (1 WP per THB 1-2M investment)

Difficult (THB 2M capital per WP)

Land Ownership

❌ No (can lease)

✅ Yes (if BOI-approved)

❌ No (unless via Thai nominee)

Best For

US investors in consulting, services, tech

Manufacturing, export, tech startups

Small businesses with Thai partners

Which One Should You Choose?

  • Choose Amity if:
    • You’re a US citizen and want full ownership without BOI restrictions.
    • Your business is in consulting, IT, trading, or services (non-restricted sectors).
    • You want a faster setup than BOI (no lengthy application).
  • Choose BOI if:
    • You’re in manufacturing, tech, or export and want tax benefits.
    • You need land ownership or multiple work permits easily.
  • Choose Thai LLC if:
    • You have a Thai partner willing to hold 51%.
    • Your business is small and doesn’t need foreign ownership.

Key Considerations

✅ Amity is great for US-owned service businesses but offers no tax perks.
✅ BOI is better for large investments with tax incentives but requires more paperwork.
❌ Avoid Amity if you need land ownership (use BOI or lease instead).